Bread Financial Holdings (BFH) shares ended the last trading session 12.7% higher at $48.28. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10.1% loss over the past four weeks.

BFH's shares surged in response to the broader market rally after President Trump announced a 90-day pause of reciprocal tariffs for most countries.

This manager of loyalty and rewards programs for retailers and others is expected to post quarterly earnings of $2.08 per share in its upcoming report, which represents a year-over-year change of -23.8%. Revenues are expected to be $957.76 million, down 3.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Bread Financial, the consensus EPS estimate for the quarter has been revised 12.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on BFH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Bread Financial is part of the Zacks Financial - Miscellaneous Services industry. Applied Digital Corporation (APLD), another stock in the same industry, closed the last trading session 8.7% higher at $5.52. APLD has returned -20.3% in the past month.

Applied Digital Corporation's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.11. Compared to the company's year-ago EPS, this represents a change of +78.9%. Applied Digital Corporation currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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